Ero Copper Corp. (TSX: ERO, NYSE: ERO) (“Ero” or
the “Company”) is pleased to announce that its Board of Directors
has approved the construction of the Boa Esperança Project ("Boa"
or the "Project") located in Pará State, Brazil. Construction is
expected to commence in the second quarter of this year, and the
Company anticipates achieving first production during the third
quarter of 2024.
In preparation for construction of Boa, the
Company has made significant progress on key workstreams,
including:
- Advancing
critical-path contracts including early works, power infrastructure
and site construction with equipment mobilization expected in
April;
- Detailed
engineering and construction designs; and
- Ongoing drill
program efforts, including further exploration of the Gap Zone and
completion of condemnation drilling for site infrastructure.
The Company also recently completed a $400
million senior unsecured notes offering, providing ample liquidity
to execute its growth projects, which are expected to double copper
production and achieve higher sustained gold production levels
while maintaining first quartile operating costs and
industry-leading returns on invested capital.
"With the full support of our Board, we are
excited to commence construction of the Boa Esperança Project,
which we believe will play an integral role in our plans to become
a 100,000 tonne per year copper producer," said David Strang, CEO.
"One of the most compelling aspects about this project is its
expected ability to double Ero's annual copper production at a low
upfront capital investment of approximately $300 million.
"With the close of our recent bond offering, we
have positioned our balance sheet to be able to readily fund this
investment in Boa, as well as our other growth initiatives, in a
range of metal price environments. We have also advanced several
key workstreams that we believe will facilitate the successful
execution of Boa's construction, which we expect to commence on
schedule in April 2022."
ABOUT ERO COPPER CORP
Ero Copper Corp is a high-growth, low-cost, low
carbon-intensity copper producer with operations in Brazil and
corporate headquarters in Vancouver, B.C. The Company's primary
asset is a 99.6% interest in the Brazilian copper mining company,
MCSA, 100% owner of the MCSA Mining Complex, which is comprised of
operations located in the Curaçá Valley, Bahia State, Brazil,
wherein the Company currently mines copper ore from the Pilar and
Vermelhos underground mines and the Surubim open pit mine, and the
Boa Esperança development project, an IOCG-type copper project
located in Pará, Brazil. The Company also owns 97.6% of the NX Gold
Mine, an operating gold and silver mine located in Mato Grosso,
Brazil. Additional information on the Company and its operations,
including technical reports on the MCSA Mining Complex, Boa
Esperança and NX Gold properties, can be found on the Company's
website (www.erocopper.com), on SEDAR (www.sedar.com), and on EDGAR
(www.sec.gov).
ERO COPPER
CORP. |
|
|
|
/s/
David Strang |
For further information contact: |
David Strang, CEO |
Courtney Lynn, VP, Corporate Development & Investor
Relations |
|
(604) 335-7504 |
|
info@erocopper.com |
CAUTION REGARDING FORWARD LOOKING INFORMATION
AND STATEMENTS
This press release contains “forward-looking
statements” within the meaning of the United States Private
Securities Litigation Reform Act of 1995 and “forward-looking
information” within the meaning of applicable Canadian securities
legislation (collectively, “forward-looking statements”).
Forward-looking statements include statements that use
forward-looking terminology such as “may”, “could”, “would”,
“will”, “should”, “intend”, “target”, “plan”, “expect”, “budget”,
“estimate”, “forecast”, “schedule”, “anticipate”, “believe”,
“continue”, “potential”, “view” or the negative or grammatical
variation thereof or other variations thereof or comparable
terminology. Such forward-looking statements include, without
limitation, statements with respect to the Company’s expectations,
strategies and plans for the MCSA Mining Complex, the NX Gold
Property and the Boa Esperança Project, including, but not limited
to, the Company’s planned exploration, development and production
activities; the timing and amount of company-wide copper production
levels; estimated timing for commencement of, and expectations
around the successful execution of, construction at the Boa
Esperança Project; the expected cost and ability to fund
construction of the Boa Esperança Project as well as other growth
initiatives; the Company's future production outlook, cash costs,
capital resources, and expenditures..
Forward-looking statements are not a guarantee
of future performance and are based upon a number of estimates and
assumptions of management in light of management’s experience and
perception of trends, current conditions and expected developments,
as well as other factors that management believes to be relevant
and reasonable in the circumstances, as of the date of this press
release including, without limitation, assumptions about: continued
effectiveness of the measures taken by the Company to mitigate the
possible impact of COVID-19 on its workforce and operations;
favourable equity and debt capital markets; the ability to raise
any necessary additional capital on reasonable terms to advance the
production, development and exploration of the Company’s properties
and assets; future prices of copper and other metal prices; the
timing and results of exploration and drilling programs; the
accuracy of any mineral reserve and mineral resource estimates; the
geology of the MCSA Mining Complex, NX Gold Property and the Boa
Esperança Property being as described in the technical reports for
these properties; production costs; the accuracy of budgeted
exploration and development costs and expenditures; the price of
other commodities such as fuel; future currency exchange rates and
interest rates; operating conditions being favourable such that the
Company is able to operate in a safe, efficient and effective
manner; work force conditions to remain healthy in the face of
prevailing epidemics, pandemics or other health risks (including
COVID-19), political and regulatory stability; the receipt of
governmental, regulatory and third party approvals, licenses and
permits on favourable terms; obtaining required renewals for
existing approvals, licenses and permits on favourable terms;
requirements under applicable laws; sustained labour stability;
stability in financial and capital goods markets; availability of
equipment and critical supplies, spare parts and consumables;
positive relations with local groups and the Company’s ability to
meet its obligations under its agreements with such groups; and
satisfying the terms and conditions of the Company’s current loan
arrangements. While the Company considers these assumptions to be
reasonable, the assumptions are inherently subject to significant
business, social, economic, political, regulatory, competitive,
global health, and other risks and uncertainties, contingencies and
other factors that could cause actual actions, events, conditions,
results, performance or achievements to be materially different
from those projected in the forward-looking statements. Many
assumptions are based on factors and events that are not within the
control of the Company and there is no assurance they will prove to
be correct.
Furthermore, such forward-looking statements
involve a variety of known and unknown risks, uncertainties and
other factors which may cause the actual plans, intentions,
activities, results, performance or achievements of the Company to
be materially different from any future plans, intentions,
activities, results, performance or achievements expressed or
implied by such forward-looking statements. Such risks include,
without limitation the risk factors listed under the heading “Risk
Factors” in the Company's Annual information Form for the year
ended December 31, 2020 and dated March 16, 2021.
Although the Company has attempted to identify
important factors that could cause actual actions, events,
conditions, results, performance or achievements to differ
materially from those described in forward-looking statements,
there may be other factors that cause actions, events, conditions,
results, performance or achievements to differ from those
anticipated, estimated or intended.
The Company cautions that the foregoing lists of
important assumptions and factors are not exhaustive. Other events
or circumstances could cause actual results to differ materially
from those estimated or projected and expressed in, or implied by,
the forward-looking statements contained herein. There can be no
assurance that forward-looking statements will prove to be
accurate, as actual results and future events could differ
materially from those anticipated in such statements. Accordingly,
readers should not place undue reliance on forward-looking
statements.
Forward-looking statements contained herein are
made as of the date of this press release and the Company disclaims
any obligation to update or revise any forward-looking statement,
whether as a result of new information, future events or results or
otherwise, except as and to the extent required by applicable
securities laws.
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